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[MoreMore Insights] What is Low Doc Loan



Low-doc home loan stands for low documentation home loans.

Low-doc loans are a way for small business owners, investors and other ABN holders to meet the requirements of a home loan application. They are designed for borrowers who otherwise wouldn't be able to get a home loan approved due to their inability to validate their earnings using traditional methods.

Low-doc home loan therefore does not require borrowers to provide their income using typical required documents, such as:

  • Two year company financial statements

  • Two year company tax returns

  • Two year individual tax returns

  • Notices of assessments


However, the relaxed documental proof in substantiating borrowers’ serviceability does mean the lender is facing greater risks. This results in low-doc loans normally having higher interest rates, reduction in loan-to-value ratio, reduced loan features to offset such risks.

Due to the risky nature of low-doc loans, not every lender will offer this product to borrowers.

Have questions regards low-doc loans? MoreMore Finance can provide you with tailored low-doc home loan products to meet your needs.


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